“Ask Your Mortgage
With our nation facing more
debt and less income many home owners are tapping into their home’s equity to make their financial future
better, particularly as many face retirement. Planning for
the future is important especially if you have the option of putting your finances in order before
retirement. Many face retirement with uncertainty and a fixed
income. Now with the current economic crisis many retirees have
seen a significant decline in their retirement accounts. So how are
they going to continue to afford their mortgage payments, medical bills, credit card bills, car payments, and
everyday living expenses? Many Seniors are considering a Reverse
Mortgage. With all Mortgage products, it is important to know the
facts in order for you to make a wise financial decision. It is
equally important for you to work with a Mortgage Professional that will review all your options from FHA
Government Sponsored Mortgage, Conventional Mortgage Financing and Reverse Mortgage options.
We have all seen the
commercials on Reverse Mortgages, but what really is a Reverse Mortgage, and how does it work? This article is to give you the details behind the Reverse Mortgage Products,
and how they work. Either the borrower or the co-borrower needs to
be at least 62 years of age. The amount of equity available in the
home determines the products availability and the qualification of each Reverse Mortgage product. During the life of the Reverse Mortgage the borrowers will make NO monthly Mortgage payments. There are NO credit
requirements for a Reverse Mortgage. There are NO income requirements.
So no matter how bad your credit is, you can qualify for this type of Mortgage, even if you have missed some
mortgage payments or are currently late on your mortgage.
When getting a Reverse
Mortgage you decide how to spend the money, however there are several disbursement options available:
Term -receive equal monthly payments for a period of months as
selected by the borrower.
Tenure -equal monthly payments as long as you live in the
Line of Credit-a line of credit that is drawn on the loan proceeds in the
amount and the time the borrower chooses until all monies are used.
Lump Sum-receive a large sum of monies from a Line of Credit equal
to or less than the available amount of the loan proceeds.
You cannot outlive the
Reverse Mortgage. As long as you are able to live in the home and maintain the taxes and insurance you do not
have to repay the Mortgage. The best part is that you will never owe more than your home’s value.
Reverse Mortgage Products
require the borrowers to live in the home as their primary residence. Once the homeowner is no longer able to either live in the home or dies, their
heirs have the right to sell the home and pay off the Reverse Mortgage or purchase the home from the Reverse
The terms and conditions of
each Reverse Mortgage product will be discussed in detail during the qualification process. The Reverse Mortgage loan is a unique type of loan that allows the borrowers
to use their equity in their homes as cash, without the monthly obligation normally associated with a
traditional Mortgage. As all Mortgage products on the market today, it is vitally important to understand and
know the terms and conditions of the Mortgage Loan. Seek the advice
of a Certified Mortgage Professional that will be able to give you the facts necessary to make the best
financial decision based on your own personal financial situation.
A Reverse Mortgage can give
you the independence and financial freedom that you deserve and have worked your whole life to
achieve. Call me today if you have questions or want to learn more
about the Reverse Mortgage options.
If you have questions or
comments please email them to email@example.com
Call Andrew today at 573-302-0600.
Listen To “The Mortgage Market Update” Weekly Radio Show on
KRMS 1150AM and 97.5FM Every Friday Morning At 8:35am
Andrew W. Conner NMLS #
Copyright © 2008-2015 Financial Planning Tools
& Services, LLC